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MIRA INFORM REPORT
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Report No. : |
501163 |
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Report Date : |
29.03.2018 |
IDENTIFICATION DETAILS
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Name : |
IWATANI CORPORATION |
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Registered Office : |
Honmachi Garden City 6F, 3-6-4 Honmachi Chuoku Osaka 541-0053 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2017 |
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Date of Incorporation : |
February 1945 |
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Com. Reg. No.: |
1200-01-077357 |
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Legal Form : |
Limited Company |
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Line of Business : |
Wholesale, Import, Export of Gases for Industrial & Household Use. |
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No. of Employees : |
1,206 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
NOTES:
Any query related to this report can be made on
e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
JAPAN - ECONOMIC OVERVIEW
Over the past 70 years, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (slightly less than 1% of GDP) have helped Japan develop an advanced economy. Two notable characteristics of the post-World War II economy were the close interlocking structures of manufacturers, suppliers, and distributors, known as keiretsu, and the guarantee of lifetime employment for a substantial portion of the urban labor force. Both features have significantly eroded under the dual pressures of global competition and domestic demographic change.
Measured on a purchasing power parity basis that adjusts for price differences, Japan in 2017 stood as the fourth-largest economy in the world after first-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2012. For three postwar decades, overall real economic growth was impressive - a 10% average in the 1960s, 5% in the 1970s, and 4% in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the aftereffects of inefficient investment and the collapse of an asset price bubble in the late 1980s, which entailed considerable time for firms to reduce excess debt, capital, and labor. Modest economic growth continued after 2000, but the economy has fallen into recession four times since 2008.
Japan enjoyed an uptick in growth in 2013 on the basis of Prime Minister Shinzo ABE’s “Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of monetary easing, “flexible” fiscal policy, and structural reform. Led by the Bank of Japan’s aggressive monetary easing, Japan is making modest progress in ending deflation, but demographic decline – a low birthrate and an aging, shrinking population – poses a major long-term challenge for the economy. The government currently faces the quandary of balancing its efforts to stimulate growth and institute economic reforms with the necessity of addressing its sizable public debt, which stands at 235% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate. However, the first such increase, in April 2014, led to another recession, so Prime Minister ABE has twice postponed the next increase, now scheduled for October 2019. Structural reforms to unlock productivity are seen as central to strengthening the economy in the long-run.
Scarce in critical natural resources, Japan has long been dependent on imported energy and raw materials. After the complete shutdown of Japan’s nuclear reactors following the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than before on imported fossil fuels. However, ABE’s government is seeking to restart nuclear power plants that meet strict new safety standards and is emphasizing nuclear energy’s importance as a base-load electricity source. In August 2015, Japan successfully restarted one nuclear reactor at the Sendai Nuclear Power Plant in Kagoshima prefecture, and several other reactors around the country have since resumed operations; however, opposition from local governments has delayed several more restarts that remain pending. Reforms of the electricity and gas sectors, including full liberalization of Japan’s energy market in April 2016 and gas market in April 2017, constitute an important part of Prime Minister Abe’s economic program.
In October 2015, Japan and 11 trading partners reached agreement on the Trans-Pacific Partnership (TPP), a pact that had promised to open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Japan was the first country to ratify the TPP in December 2016; the United States signaled its withdrawal from the TPP in January 2017, and in November 2017 the remaining 11 countries agreed on the core elements of a modified agreement, which they renamed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
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Source : CIA |
Company
name and address
IWATANI CORPORATION
REGD
NAME: Iwatani Sangyo KK
MAIN
OFFICE: Honmachi Garden City 6F, 3-6-4
Honmachi Chuoku Osaka 541-0053 JAPAN
Tel:
06-7637-3131 Fax: 06-7637-3535
E-Mail
address: iicworld@iwatani.co.jp
ACTIVITIES
Wholesale, import, export of gases for
industrial & household use
BRANCHES
Tokyo (address as given), Sapporo, Sendai, Nagoya,
Hiroshima, Fukuoka, other. (Tot 83)
OVERSEAS
China, Hong Kong, Taiwan, Korea, Singapore, Thailand, Malaysia, Indonesia, Philippines, Australia, USA, Europe, other (Tot 62)
CHIEF
EXEC
MITSUHIRO TANIMOTO, PRES
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 588,045 M
PAYMENTS REGULAR CAPITAL Yen
20,096 M
TREND SLOW WORTH Yen 134,115 M
STARTED 1945 EMPLOYES 1,206
COMMENT
TRADING COMPANY SPECIALIZING IN GASES FOR INDUSTRIAL & HOUSE HOLD
USE.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS
HIGHLIGHTS
A leading trading house specialized in LPG
wholesaling and retailing, and handling industrial gases such as nitrogen,
hydrogen and helium. Operates LPG sales and supply networks throughout the
country (totals 81 locations), and is the largest domestic trader in terms of
volume. Also engaged in the materials business, including industrial robots,
semiconductor-related equipment, synthetic resins and metals. Expanding the
lucrative household-use LPG retailing business as well as the mainstay
wholesaling business. Around 60% domestic share for the industrial-use hydrogen
business including a monopoly share for liquid hydrogen, and aggressively
cultivating a new market by establishing hydrogen stations for fuel-cell cars
as well. Formed an alliance with Kansai Electric Power to enter into city gas
sales in the Kansai region, following electricity sales for households in the
Kanto region.
FINANCIAL
INFORMATION
The sales volume for Mar/2017 fiscal term
amounted to Yen 588,015 million, a 4.57% down from Yen 616,201 million in the
previous term. The recurring profit was posted at Yen 26,834 million and the
net profit at Yen 16,546 million, respectively, compared with Yen 21,584
million recurring profit and Yen 12,365 million net profit, respectively, a
year ago
For the current term ending Mar 2018 the
recurring profit is projected at Yen 26,100 million and the net profit at Yen
15,900 million, respectively, on a 16.49% rise in turnover, to Yen 685,000
million.
The financial situation is considered FAIR
and good for ORDINARY business engagements.
REGISTRATION
Date Registered Feb 1945
Regd No.: 1200-01-077357 (Osaka-Chuoku)
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 600 million shares
Issued:
251,365,028 shares
Sum: Yen 20,096 million
Major shareholders (%): Iwatani Naoji Foundation (8.2), Master Trust
Bank of Japan T (2.9), Japan Trustee Services T (2.9), Tetsu Iwatani Co (2.7),
MUFG (2.6), Resona Bank (2.3), Company’s Treasury Stock (2.0), Nippon Life Ins
(1.7), Iwatani Enyukai (1.7), Jisya Senyukai (1.7); foreign owners (8.6)
No. of shareholders: 22,195
Listed on the S/Exchange (s)
of: Tokyo & Nagoya
Managements: Akiji Makino, ch; Mitsuhiro Tanimoto, pres;
Toshio Watanabe, v ch; Naoto Ueba, v pres; Takashi Funaki, s/mgn dir; Hiroshi
Majima, s/mgn dir; Masanori Watanabe, mgn dir; Naoki Iwatani, mgn dir; Satoshi
Watanabe, mgn dir; Makoto Horiguchi, mgn dir; Yutaka Yamamoto, dir; Kazumasa
Inada, dir; Hideki Tainaka, dir
Nothing detrimental is known as to the commercial morality of
executives.
Related companies: Iwatani Industrial Gases Corp, Central
Sekiyu Gas Co, Iwatani Materials Corp, other
OPERATION
Activities: Leading trading house specializing in energy
& gases:
(Sales breakdown by Divisions):
Energy & Lifestyle-related
Div (48%): LPG, LNG,
kerosene, LPG supply equipment, gas heat pumps, wind power generation systems,
housing equipment, bathroom units, inte- grated
kitchen systems, foods, livestock animal feeds, fertilizer, agricultural
equipment, horticultural equipment & supplies, seeds & seedlings,
other;
Industrial Gas & Machinery Div (28%): welding
gases, gas equipment, solvents, cleaning equipment, jigs & robots, other;
Materials & Electronics Div
(20%): semiconductor mfg
equipment, communication devices, synthetic resin materials, ceramics, iron
& metals, building materials, other;
Agri-Bio & Foods, others
(5%)
Others (1%).
Overseas trading ratio (12%)
Clients: [Mfrs, wholesalers] Astomos Energy Corp, Iwatani Cassette-Feu Corp,
Iwatani Industrial Gases Corp, Iwatani Corp Tohoku, Iwatani Hokkaido, Iwatani
Okinawa, Iwatani Kyushu, other
No. of accounts: 1,000
Domestic areas of activities: Nationwide
Suppliers: [Oil refiners, mfrs, wholesalers] Iwatani
Industrial Gases, Nippon Oil Corp, Cosmo Petroleum Gas, Kobe Steel, Marubeni
Gas Energy, Mitsubishi Electric, Nippon Air Liquid, Yasukawa Electric Corp,
Astomos Energy, ENEOS Globe, New Cosmos Electricity, Kurimoto Iron Works,
other.
Payment record: Regular
Location: Business area in Osaka. Office premises at
the caption address are owned and maintained satisfactorily.
Bank References:
MUFG (Osaka-Chuo)
Resona Bank (Osaka)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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Terms Ending: |
31/03/2018 |
31/03/2017 |
31/03/2016 |
31/03/2015 |
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Annual Sales |
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685,000
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588,045
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616,201
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691,902
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Recur. Profit |
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26,100
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26,834
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21,584
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12,761
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Net Profit |
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15,900
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16,546
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12,365
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6,199 |
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Total Assets |
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434,712
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404,496
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408,838
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Current Assets |
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184,464
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175,878
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181,809
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Current Liabs |
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182,269
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172,489
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192,678
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Net Worth |
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134,415
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114,781
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109,007
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Capital, Paid-Up |
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20,096
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20,096
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20,096
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Div.Ttl in Million (¥) |
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1,970 |
1,724 |
1,724 |
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<Analytical
Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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16.49 |
-4.57 |
-10.94
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-1.71 |
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Current Ratio |
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101.20
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101.96
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94.36 |
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N.Worth Ratio |
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30.92 |
28.38 |
26.66 |
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R.Profit/Sales |
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3.81 |
4.56 |
3.50 |
1.84 |
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N.Profit/Sales |
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2.32 |
2.81 |
2.01 |
0.90 |
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Return On Equity |
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12.31 |
10.77 |
5.69 |
Notes: Forecast (or estimated) figures for the
31/03/2018 fiscal term.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 65.04 |
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1 |
INR 92.28 |
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Euro |
1 |
INR 80.62 |
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Yen |
1 |
INR 0.61 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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PRA |
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Report Prepared
by : |
SYL |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with moderate
risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on secured
terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major sections
of this report. The assessed factors are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
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Promoters
/ Management background
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Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.